US to End Preferential Trade Status for India and Turkey

March 5, 2019WorldComments Off on US to End Preferential Trade Status for India and Turkey152 Views

WASHINGTON – US president Donald Trump was to open a new front in the trade wars with a plan to end the preferential trade treatment accorded to India and Turkey, Reuters reported Tuesday.
On the order of President Donald Trump, the United States intends to remove the preferential trade status granted to India and Turkey, announced the office of the US chief of commerce.
Washington aims to end India’s and Turkey’s designation as beneficiary developing countries under the Generalized System of Preferences (GSP) program, as they no longer meet the eligibility criteria, said Monday the office of the US Trade Representative.
India has not given assurances that it will allow access to the required market, while Turkey is “economically developed enough” to no longer be eligible, the statement said.
Under the GSP scheme, “certain products” may enter the United States duty-free if countries meet the eligibility criteria, including “providing the United States with fair and reasonable market access”.
India, however, has put in place a wide range of trade barriers that are creating serious negative effects on US trade, the statement said.
Turkey, having been designated a GSP beneficiary in 1975, has demonstrated a higher level of economic development”, which means that it can be “withdrawn” from the program.
The amendments can only come into effect 60 days after notification from the US Congress and the countries concerned. A process was started on Monday with the sending of letters to the Speaker of the House of Representatives and the Speaker of the Senate.
The change for India came after intensive engagement between New Delhi and Washington, wrote Trump in a letter, the text of which was published by the White House.
I will continue to assess whether the Indian government is providing equitable and reasonable access to its markets, in line with GSP eligibility criteria, the US president wrote.
In his letter on Turkey, Trump said the country’s economy has grown and diversified, and pointed out that Istanbul had already graduated from the GSP programs of other developed countries.
(Sahar News Monitoring Desk)